There is increasing evidence of the two-way relationship between health and economic
growth: while economic development can lead to improved population health, a
healthier population can also drive economic growth. Although this finding has
important policy implications, little is known about its direct relevance for the
-transition- countries in central and eastern Europe and the Commonwealth of
Independent States that are facing a very particular health challenge, predominantly
posed by noncommunicable diseases (NCD) and injuries.

This study takes a first step towards analysing the issue. The focus is on the Russian
Federation, although the findings are also relevant to other transitional economies.
Two important questions are examined:
- What effect has adult ill-health, in particular NCD and injuries, had on the Russian
economy and the economic outcomes of the people living there?
- If the excessive burden of adult ill-health in the Russian Federation were reduced,
what economic benefits could result?

The answers are unambiguous: poor adult health negatively affects economic wellbeing
at both the individual and household levels in the Russian Federation; and, if
effective action were taken, improved health would play an important role in
sustaining high economic growth rates.